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The United Arab Emirates (UAE) and Tanzania today signed an agreement on double taxation.
The agreement deals with preventing double taxation and tax evasion.It aims to strengthen tax cooperation between the UAE and southern African countries and “avoid hindering the flow of trade and investment”, UAE Ministry of Finance said in a statement.
What does it mean: Double taxation occurs when the same income is taxed by different entities. It can happen in international trade and investment, for example, if UAE citizens profit from businesses in Tanzania. Some countries, such as the United States, allow deductions for foreign taxes paid.
Why it matters: The agreement further demonstrates the UAE’s desire to remove barriers to bilateral investment and trade with Tanzania. Relations between the UAE and the country are growing. In August, UAE renewable energy company Masdar agreed to Development of solar and wind energy project in Tanzania.
The UAE is also looking to forge closer economic ties with other African countries. In June, Abu Dhabi signed a trade finance agreement with several countries in West Africa.UAE too Consider Kenya for its next Free trade agreement.
understand more: The UAE is undergoing some major changes in terms of taxation and financial regulation. The Gulf state has launched several initiatives this year aimed at fighting money laundering.Recently, the central bank announced new guide About identifying individuals involved in money laundering and terrorist financing.The next few money laundering and sanctions destruction Recent controversy involving the UAE.
The UAE also announced earlier this year that it would collect the first ever business profit tax From 2023. This is part of a larger overhaul to attract more entrepreneurs, but also represents an effort by the state to reduce its reliance on oil and gas revenues.
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